Essay
Consider a farmer's production possibilities curve, with corn measured on the vertical axis, and soybeans on the horizontal axis. Describe the impact of each of the following on the curve:
(a) The farmer buys or rents more land.
(b) A higher yielding variety of corn seed is developed.
(c) A hailstorm wipes out half of whatever crops the farmer has planted
(d) The government raises price supports for soybeans.
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(a) The entire curve should shift out, s...View Answer
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